Stuff to read

  1. The collapse of civilization (probably due to climate change) will affect different classes in different ways
  2. The brutal indifference of colonial murder
  3. An interesting discussion of doctors, aging and genetic ethics
  4. The young are impulsive and emotional, which is why they might rescue us.
  5. Ukraine’s new president might be a comedian, but he’s got the right ideas for his people.
  6. Fairbnb is about to launch. I’ve given advice to them on how to help (rather than harm) communities.
  7. Soldiers know the difference between a plan and a strategy. Do their superiors?
  8. Is your neighborhood livable? We have 6/6 within walking distance of our flat.
  9. A nicely balanced article on climate-change-induced conflict
  10. Helping whistleblowers uncover financial crimes

Keynes on productivity and leisure

A few weeks ago, I wrote on our (collective) problem of people turning productivity gains into additional consumption rather than additional leisure. This is a collective problem because more consumption is bad for sustainability but also because everyone loses if there’s more (zero-sum) competition for position goods such as houses in good neighborhoods or places in good schools. 

In that post — which I sometimes summarize as “hipsters can save the world” — I mentioned Keynes’s 1930 essay “Economic possibilities for our grandchildren” [pdf] which I had not read. Now I have, and I have a few thoughts to share.

  1. Keynes is very aware of the long term benefits of productivity.
  2. He attributes most of the gains from the industrial revolution to technical improvements and capital accumulation. Under technical improvements, he includes coal, steam and petrol, but he does not pay much attention to their nature as “non-renewable” resources. This oversight is expected in 1930, just as is the problem of missing the long-run impacts of burning fossil fuels.
  3. By “capital accumulation,” Keynes refers to the treasure and revenues from colonialism and other ventures abroad. He appeals to the “miracle of compound interest” in explaining British wealth, while completely ignoring the fact that most of this wealth was from theft rather than forming or growing capital.
  4. Keynes refers to the “economic problem” of finding enough food, clothing and shelter for everyone, and that progress has put the solution to this problem within sight. His assumption that people will enjoy more leisure when the “economic problem” is solved turned out to be  wrong, as most people (even the poor) used the gains from productivity to compete for positional goods rather than settle for an acceptable level of economic goods such as food and shelter. He also ignores the ongoing problem of colonial/social systems that exploit the poor for the benefits of the rich.
  5. Keynes assumes that our prosperity will accelerate as population stabilizes (in 1930, it was just over 2 billion), as there will be no need for more children. He was obviously wrong there. (Keynes was gay bisexual and perhaps underestimated the desire of “breeders” to have children.)
  6. He guesses that output per person will be 4-8x higher in 2030 than in 1930. The jump from 1929 to 2016 was about 4x.
  7. Keynes labels consumption of positional goods as “non-economic” consumption, and then dismisses such demand as a distraction from our achievement (food and shelter) and better uses of our time (leisure), on these terms:

    The love of money as a possession — as distinguished from the love of money as a means to the enjoyments and realities of life — will be recognised for what it is, a somewhat disgusting morbidity, one of those semicriminal, semi-pathological propensities which one hands over with a shudder to the specialists in mental disease. All kinds of social customs and economic practices, affecting the distribution of wealth and of economic rewards and penalties, which we now maintain at all costs, however distasteful and unjust they may be in themselves, because they are tremendously useful in promoting the accumulation of capital, we shall then be free, at last, to discard.

  8. They were not discarded, as Keynes was over-optimistic:

    I look forward, therefore, in days not so very remote, to the greatest change which has ever occurred in the material environment of life for human beings in the aggregate. But, of course, it will all happen gradually, not as a catastrophe. Indeed, it has already begun. The course of affairs will simply be that there will be ever larger and larger classes and groups of people from whom problems of economic necessity have been practically removed. The critical difference will be realised when this condition has become so general that the nature of one’s duty to one’s neighbour is changed. For it will remain reasonable to be economically purposive for others after it has ceased to be reasonable for oneself.

  9. Alas, instead we get this reality (from The Atlantic this week):

    Helping consumers figure out what to buy amid an endless sea of choice online has become a cottage industry unto itself. Many brands and retailers now wield marketing buzzwords such as curation, differentiation, and discovery as they attempt to sell an assortment of stuff targeted to their ideal customer. Companies find such shoppers through the data gold mine of digital advertising, which can catalog people by gender, income level, personal interests, and more. Since Americans have lost the ability to sort through the sheer volume of the consumer choices available to them, a ghost now has to be in the retail machine, whether it’s an algorithm, an influencer, or some snazzy ad tech to help a product follow you around the internet.

My one-handed conclusion is that Keynes was right in predicting how prosperous we’d become but wrong in assuming that humans would use prosperity for personal development and neighborly relations. Instead, we’ve seen ongoing (and unsustainable) competition for status via conspicuous consumption 🙁

Stuff to read

  1. Used stuff is not “dumped” on poor people, but bought by them
  2. Remote sensing will help us find/measure air pollution from power plants
  3. History’s “message” often depends on the identity of the narrator
  4. When I walked into the Bronx I was an atheist. It was something I was sure about. After years of traveling America, I wasn’t so sure.”
  5. Why books (and lectures) don’t work. Thought provoking…
  6. Beautiful water photos
  7. Time to call it Climate Change Crisis
  8. One statistical “success” lead to a thousand useless publications
  9. A really good analysis of the Muller Report (and Trump’s chaos)
  10. Spying is getting very complicated (and these tools will be used on us)

H/T to PB

Review: The Divide

Jason Hickel’s book (subtitled “Global Inequality from Conquest to Free Markets” in the US and “A Brief Guide to Global Inequality and its Solutions” in the UK) delves into questions that matter to me, in my post-colonial woke state. In some case, I agreed with Hickel (meaning he’s not wrong); in others, I disagreed (meaning he’s wrong). 

First, where he’s not wrong (i.e., “I agree with him but maybe we’re both wrong”): The colonial period — and a current reality of post-colonial theft by corrupt locals and global elites — was and is terrible for many people now living in “developing” countries. Hickel is right to point out that these countries have been attacked, undermined and stripped of wealth, choice and opportunity. He is right to trace the flow of stolen money from “poor” countries to private bank accounts in “rich” countries (the UK and US being top destinations). He is right to explain how various development agencies are more interested in “hitting KPIs” than actual development.

When he’s wrong, it’s the basic stuff. The World Bank isn’t conspiring to rob the poor; they’re just ideological and incompetent, slaves to the “raving scribblings of some forgotten economist”. The WTO is not trying to (or capable) of exploitative trade regimes. It’s enamored of GDP statistics, fine-tuned rules, and a lack of imagination. These organizations (the IMF, UN, et al.) are the bastard children of quarreling “great powers” who try to dominate but mostly fcuk things up. Should Hickel complain of their harms? Yes, indeed. Does he attribute causality (and thus solutions) correctly? No, I think not. That doesn’t mean trust the World Bank. It means that countries — and citizens — need home-grown solutions. That doesn’t mean trust politicians. They often cause the problems they blame on others (Donald Trump is a gift: a political disaster of random oversized id.)

I had these mixed feelings about the book while I was reading, but I ended up liking the book for its passionate — and often carefully considered — critique of the world’s current order. I agree with Hickel in the main (historic and present exploitation often buried under “sorry we killed you, but we meant well!” propaganda), and most of my remaining criticisms center on his optimistic solutions and ideological critiques.

From here, I’ll add notes in order of topics’ appearance.

  • In 1949, Truman defined “development” as the path towards “fixing” countries of the Global South (GS) damaged by decades or centuries of colonialism by the Global North (GN). This idea implies GS should pursue GN policies and goals. The invention of “underdeveloped” gave space for the existence of a permanent underclass that would be served by charity and photojournalists, but not actual reform.
  • Hickel is right that development aid is a drop in the bucket compared to bad policies and right to question the bona fides of aid organizations that fail to lobby for structural change. (He notes, correctly, that they would go out of business if they reached their professed targets.) He’s also right that absolute poverty (headcount) matters, and that it should be counted via “lack” rather than an arbitrary (and miserly) $1/day “budget”. So, yeah, there are 4.3 billion poor people, which shows how unequal and fucked up the world is. 
  • Hickel says “something is fundamentally wrong with our economic system” (p 13), but I think it’s the political system (in which I include colonial institutions). Perhaps we mean the same thing, as I’ll admit that bad politics can lead to an unfair economic system, but does he mean the same, or does he trust in the (aggregate) honesty of politicians? I don’t.
  • Hickel says that newly independent counties were doing well with their post-colonial policies until their old masters used the World Bank, trade, etc. to derail them. I think progress was more uneven, and their need for advice thus great. I think that GN tried to impose colonial policies but also that GS made some big mistakes. I agree that GS people suffered but GN suffered as well from bad policies (as they are with respect to mismanaged social welfare).
  • I now think humans are lucky to survive their stupidity and greed. A few years ago I thought stupidity and greed rarer. I changed my mind based on the fact that our mistakes are aggregating into larger fuckups, as more dumb spills into more lives.
  • GS “pay” $billions per year to GN via corruption, theft and exploitation. That’s one reason they stay poor. Hickel claims that “unfair trade” strips much more, via underpaid wages. I don’t agree with that one (wages reflect productivity more than bargaining power in global trade), I do agree that the GS is heavily (self-)exploited via pollution, weapons sales, resource exploitation, etc. 
  • Statistical assumptions explain why either 300 million or 900 million Indians are “poor.” but which figure is right? Speaking of explanations, Hickel is sometimes too quick to dismiss the wealth-creating potential of markets, e.g., ignoring China’s entrepreneurs.
  • Inequality is so bad that average global income would need to be $1.3 million/person to raise wages for the poorest above $5/day (holding inequality constant). There’s a crying need for redistribution but — surprise — no political support from the beneficiaries of this scandal.
  • Today, we define “great powers” as those who have invaded, conquored and exploited others (UK, FR, ES, PT, BE, US, RU), not made their diverse subjects wealthy (Ottoman, Mogul, Roman and Austro-Hungarian empires). In this definition, we allow the victors to write exploitation into “inevitable history” rather than question that definition of “empirical success.” 
  • Most colonial wealth was from theft, not productivity. That’s not success. (It’s the same with wealth of the industrial revolution, as the resulting cost from climate disruption might ruin our current prosperity.)
  • Hickel uses massive statistics to impress readers on the magnitude of theft and destruction. I’d put those statistics in terms of, say, the average GN citizen back in the day, or today. The waste was terrible, but it’s ahrd to see in the 000000000000s!
  • Hickel quotes Polanyi, who opposed the commodification of land and labor as impoverishing the poor who lived on the commons. (Hickel calls this the birth of capitalism, but capitalism is millennia older.) I disagree with this IF the poor have free will, but not if their commons is stolen and they are forced into wage labor. That’s not a reason to hate markets for land or labor, but a good reason to hate (political) theft and exploitation.
  • It’s hard to overstate the horrors and evil of colonialism, but the income gap between rich and poor growing from 3:1 to 35:1 makes vampires jealous.
  • Hickel says GS counties made a lot of post-colonial progress, but then he cites the Peróns of Argentina with approval, so I’m less impressed. I agree though, that GS countries should hide from GN exporters while they grow their industries (under intra-GS competition, in my opinion). 
  • Hickel and I have different definitions of “neoliberal” (he says they like to subsidize business; Hayek and Friedman are rolling in their graves), but we agree that GN countries supported terrible GS leaders.
  • Hickel thinks various debt crises are aimed at exploiting the GS, when they are basically organized theft by elites. I agree with him that indebted countries (e.g., Greece in 2009) should just go bankrupt. I disagree with him that they would have an “easy time” thereafter in the markets. 
  • Hickel mixes a few too many conspiracy theories into his text. He’s got a good survey of anti-capitalism without an appropriate skepticism of their claims. His command of macroeconomics, use of data, and understanding of Adam Smith and free trade is sometimes way off. Thus, he assumes victims where there are suicides and threats in good ideas. He sees GS countries as powerless but also purposeful when the opposite is true, as we can see by the “wages of corruption.”
  • Hickel loses credibility with excessive claims on the damage of land grabs and climate change. That undermines his effectiveness only because he continues to miss other driving factors (political greed at many levels). 
  • Hickel ends his book with ideas for helping the poor via structural adjustment. He begins with global debt forgiveness and then moves to global democracy, just wages and recapturing the commons. I agree with these (in theory) but see little hope empirically in a world that is as exploitative as the one he described. OTOH, I am happy to agree that we should dump GDP for GPI, lower consumption, pursue UBI, etc.  At the end of this chapter of fantasies, I had no more wishes left in my magic wand — except perhaps that the rich would agree to Hickel’s changes. Here’s the first step.

My one-handed conclusion is that you should read this book, first, for its description and criticism of the way the world’s poorer people have been made and kept poor. Second, you should read it for a list of good ideas for a better future. Third, don’t read it for its explanation of economics, markets or corruption. People are far more creative — and calculating.


Addendum (23 May): The brutal indifference of colonial murder

Stuff to read

  1. Minimum wages help low paid workers overcome “unequal market power” in setting wages, but they can — in “loose” labor markets — still make it harder to get hired.
  2. More evidence of sexism in the economics profession (as well as the clueless behavior of manspaining graduate student trolls)
  3. How your diet drives climate change — and what to do about it
  4. Are subscription services encouraging over-consumption?
  5. A pretty accurate vies of the “downside” of Amsterdam 😉
  6. Environmental justice needs more attention (and action!)
  7. Watch this TED talk on working as a team instead of competing to beat each other.
  8. Listen to this interview on trusting the poor (rather than treating them as babies) as a means of helping them improve their lives.
  9. I support replacing student debt by taking an equity stake in their future.

H/T to PB

 

Jive Talking — episode 25.5 update

After 25 episodes, I have a five-minute update on progress and plans. Please give me suggestions on how to improve 🙂

Oh, and this is pretty interesting:

Instead of emotion or camaraderie, what podcasts produce is chumminess — reminiscent of the bourgeois club atmosphere, reconfigured as the desperate friendliness of burned-out knowledge workers. They aren’t pieces of media so much as second jobs or second lives — a way to pursue our hobbies when we have no time to spare, to have smart people talk at us when we have no time to think, to have new books summarized when we have no time to read

Productivity should improve your life

In his 1968 “The Tragedy of the Commons“, Garrett Hardin explained how population growth threatened ecosystems that lacked the carrying capacity for billions of people. In her 2000 “The IPAT Equation and Its Variants” [pdf], Marian Chertow reviews the history of I=PAT, an equation that summarizes how (Environmental) Impact rises with Population and Affluence but falls with Technology.

In my Jive Talk with Brian Czech of the Center for the Advancement of the Steady State Economy, I was frustrated with Czech’s advice that humans “restrain themselves” from over-consuming as a means of replacing consumption and economic growth with renewal and economic stability. Indeed, Hardin, who thought little of self-control, called for “mutual coercion” as a means of “relinquishing the freedom to breed” [pp 1247-48].

Clearly, there are problems with reducing Impact via reductions in Population or (the wages of) Affluence. There are also, I think, problems with hoping (or assuming) that Technology will advance fast enough to overcome pressures of Population or Affluence. I hold this view because most technological advances increase supply by lowering prices or providing larger quantities at the same prices, which usually means that innovations bring more rather than less consumption. This dynamic is known as the Jeavons Paradox, and we can see it in the way that additional food from the Green Revolution led to population growth, increases in auto efficiency led to larger cars, cheaper clothes led to larger wardrobes, etc. 

Are we doomed? 

There’s no sign, after 50 years, of Hardin’s “mutual coercion, but I think we have a few chances to save ourselves by reversing our burden on resources and ecosystems. I’ll go from least to most promising.

First, there’s a small chance that technological breakthroughs will bring about an increase of sustainable supply that is so significant that we can eat our cake and have it. In this category, I’d put something like a fusion reactor that sucks CO2 and methane from the air while making energy so cheap as to replace all fossil sources. This “Elon-the-savior” solution is unlikely.

Second, we could price damages and protect collective property via changes in laws and regulations. This step includes global carbon taxes and actions to replace political management of the commons with property rights for all citizens. I’ve written about this idea for national water, but I don’t see the political will to take away all those goodies from the 1 percenters who currently enjoy excess wealth at our expense.

Third, I think that there’s a strong business model for short sellers who use science and public pressure to ban or bankrupt firms contributing to climate disruption, biodiversity destruction, and ecosystem death. In most cases, short sellers bet that stock prices will drop so they can make money. It’s my suggestion that they cause prices to drop by getting businesses penalized or banned.  The UK Labour Party has floated the idea of delisting firms that do not keep to climate limits. Many asbestos firms were bankrupted by their legal liabilities. This idea is more powerful than divestment or boycotts that do nothing to undermine these companies’ basic purpose.

Fourth (and the purpose of this post), I think there’s the chance of a paradigm shift in which people decide to consume less than their affluence would support (and perhaps even have fewer kids). This “inward shift of demand” would lower economic growth without lowering our quality of life.

How would it work?

Let’s begin with a definition and a misunderstanding.

The definition: Economic output = productivity * work effort, holding constant capital stocks and allowing proportional input of raw materials. This concept underlies economists’ claim that our prosperity advances with our productivity. It also explains why GDP/capita is the target measure of choice for most economists. High GDP/capita defines the difference between rich and poor countries, but it ignores inequality as well as sustainability. (I prefer the Inequality-Adjusted Human Development Index and Genuine Progress Indicator as measures of success.) 

The misunderstanding: Productivity automatically means more output and consumption, when it need not mean more of either. A recent Economist repeats this assumption by asserting that “improving productivity is generally agreed to be the best way to achieve faster economic growth and higher living standards.” Economic growth is neither necessary nor sufficient in providing higher living standards once a minimal level of food, clothing and shelter is achieved. 

To understand more about this misunderstanding, remember that economists target “utility” — often defined as happiness — as our motivating goal in life, meaning that humans will chase increases in utility when given the opportunity. But what contributes to utility? Sure, we can talk about the consumption of basic goods (food, shelter, clothing), but we can also include leisure time, a satisfying job, or good health — things that do not necessarily arrive with more money. Going further, we also know that people spend a lot to get  “positional goods” that set them above others in some way — a penthouse apartment, for example. (These goods are also called Veblen goods after the economist whose 1899 book, The Theory of the Leisure Class, first defined “conspicuous consumption”.)

The problem is that economists, by assuming we always want as much as possible (“non-satiation”), have lost track of the different ways we maximize utility.

Higher productivity could mean less work rather than more consumption. 

Here’s an example. If I work 40 hours and make $10/hour, then I earn $400/week, which I spend on goods and services. Thus my contribution to GDP is $400/week.

If I learn skills and double my productivity, then my wages should rise in proportion (to $20/hour), and I have more choices:

  • Conventional: Work 40 hours @ $20/hour to earn (and spend) $800/week. My contribution to GDP doubles with my consumption, and that higher consumption means my “footprint” has also grown heavier.
  • Security: Work 40 hours @ $20/hour. Spend $400/week, save $400. My contribution to GDP stays the same but now I have way more financial security, and my savings contribute to capital accumulation that increases productivity and/or natural capital.
  • Leisure: Work 20 hours @ $20/hour to earn (and spend) $400/week. Now I have 20 extra hours to do what I want, which could mean doing free activities (cash consumption equal) or “self-supply” activities (e.g., cleaning my own place or watching my own kids) that will save me money but also reduce GDP. 

Of course, I could also choose a mix of these three extremes that matches my preferences (subject to “frictions” around working 20-40 hours). The key ideas here are that we should use our productivity gains (i.e., the returns  to university education, work experience and the wisdom of life) to make our lives better, not just to consume more — and contribute to ecological stress. (I’m aware of Keynes’s 1930 “Economic Possibilities for our Grandchildren” [pdf] which I will read ASAP, which I blog on here.)

Can this happen? How would it work out?

Yes, it could happen. I have personally made choices that involve less work and less consumption in my pursuit of financial security and a simpler life (what a relief, selling my car). I have also explored how hipsters can pursue a low wage, low consumption path to satisfaction. In terms of social transitions in rich and poor countries alike, I see these steps:

Early stage: Hippies, tiny-house advocates, and those who agree with Thoreau in “my needs are few, therefore I am rich” perspective consume less in a consumerist society. Mr Money Mustache is a famous proponent.

Adaption: Poorer people can immediately do better for themselves if they replace wasteful consumption promoted by influencers and advertisers. The poor of rich and poor countries can pivot to better role models. The poor are still targeted by ponzi schemes, mafias, predatory preachers, and corrupt politicians, but greater financial security might give them more breathing room to step back and make better choices

Competition: Some people think them must work harder to compete for limited living, educational or social space. That’s true, but reduced consumption of new cars, dinners out, etc. can leave “non-consumers”  with more savings or buying power.

Population: A non-trivial number of young people are thinking twice about having kids, mostly because kids are so expensive, but also because it’s hard to bring more children into a world that’s increasingly stressed under the environmental and political pressures of 7+ billion people struggling for positional success. Fewer kids mean less spending and thus less pressure to work as much.

Supply Side: The big change would happen if there’s a “tipping point” of housing demand, i.e., smaller houses replacing larger houses at a 2:1 ratio (two 75m2 flats replacing one 150m2 flat), which would mean more affordable housing, shorter commutes and denser urban spaces. Such changes would need to come with caps on parking spaces (for those who still “must” drive) and other areas of competition over the commons, but the supply shift would also reduce prices and thus the need to work as much.

Demand side: Lower consumption would means smaller stores, fewer deliveries, less waste, and many other improvements that would improve quality of life and reduce ecosystem pressures.

My one-handed conclusion is that you should think about converting your productivity gains into greater happiness rather than greater consumption.


Addendum (21 May): Here’s a good podcast discussion on happiness via non-consumption.

Addendum (6 June): I am reading a history of the open-source software movement, which has a strong ethos against corporate “overhead” absorbing time and money without creating social benefit. What’s interesting is that they also appeal to less, but better work:

The GNU Manifesto explicitly calls out the corporate work arrangement as a waste of time. It reads in part: “We have already greatly reduced the amount of work that the whole society must do for its actual productivity, but only a little of this has translated itself into leisure for workers because much nonproductive activity is required to accompany productive activity. The main causes of this are bureaucracy and isometric struggles against competition. The GNU Manifesto contends that free software has the potential to reduce these productivity drains in software production. It announces that movement towards free software is a technical imperative, ‘in order for technical gains in productivity to translate into less work for us.’”[106]

Addendum (25 June): An overview of the DeGrowth Movement.

True costs of 5G

Marieke writes*

The wireless network has become an indispensable part of our society, the 5th generation will soon be implemented. The implementation of the 5G network in the Netherlands is planned in Amsterdam by 2020, and from 2025 onwards all European cities have to be covered according to the Dutch news provider.

What does 5G actually entail? Technically speaking, 5G enables a much faster connection (up until 20 Gbps, which means 20 times faster Wi-Fi and 30 times faster data) and it used a much bigger bandwidth of the mobile broadband, which will generate a bigger capacity and coverage for all network-users. Next to providing the possibility of using the wireless network with a massively increased speed, the 5G network will also enable the following possibilities:

  • Internet of things, e.g., smart heating-systems, self-ordering fridges, etc.
  • Self-driving cars
  • Smart cities, e.g., parking lots with sensors or automatic streetlamps
  • Industrialized automation, e.g., scheduling maintenance from a distance
  • Voice commands via devices such as Siri, Alexa and Google

For 5G internet many more, but smaller antennas are needed than for 4G. Volkskrant says that to cover an entire city with internet, an antenna is needed on every corner of the street.

When reading into the literature (both academic, peer reviewed sources, newspaper articles and websites of pro-5G stakeholders), it becomes clear that 5G is mainly presented as economically profitable, firstly because of the insane number of new products that can be brought onto the market or other uses of products that can be optimized, but also because it is said to be more energy efficient than 4G networks. T-mobile for example emphasizes that industrialized automation will save a lot of costs that are a result of current inefficiencies in the production process of many products and services.

However, what remains undiscussed in these sources, are the negative  externalities. For example:

  • Energy costs: even though 5G uses less energy per operation, the overall use of internet will increase, because more devices will be connected to the wireless system. Next to this, 5G requires the production of new devices and infrastructure to replace 4G devices and systems, increasing energy consumption and CO2 emissions [pdf].
  • Impact of radiation on mental health: it is argued that the addition of the high frequency 5G radiation to an already complex mix of lower frequencies (prior generations), will contribute to a negative public health outcome. It is stressed that the effects are still too unclear to draw any long-term conclusions. Additionally, the effects are hard to measure, since there is no control group anymore (everyone is exposed to the radiation). It is emphasized that these effects need to be studied before 5G is brought to the market
  • Lastly, the current generation of wireless connection, is already proven to negatively impact mental health, when assessing the impact of smartphone and social media use. The question arises if this would increase with the introduction to 5G.

Bottom line: For my essay I want to research the costs of these externalities and compare them to the economic benefits of the implementation of the 5G network.


* Please help my Environmental Economics students by commenting on unclear analysis, alternative perspectives, better data sources, or maybe just saying something nice :).

Stuff to read

  1. Bad news: Global soil fertility gone in 30-60 years due to overuse of pesticides and fertilizers. Good news: Some (small %) of farmers are returning to “bio-organic” practices. Hurry!
  2. How to be a good parent
  3. The idea that mass catering must be devoid of pleasure is false
  4. Play the “evolution of trust” game 🙂
  5. In praise of dementia (assuming you have caregivers!)
  6. The best advice. Really.
  7. The market is betting on climate change (happening)
  8. London’s congestion charging has improved quality of life
  9. I agree that Bernie should give away his $2 million. It may be the easiest spending to defeat the “billionaire” thief-in-chief.
  10. A charming video on the chalk that mathematicians love, featuring my old boss 🙂

H/Ts to PB and RN

Educating girls: Two birds, one stone

Jasmijn writes*

It is commonly assumed that solutions to climate change are to be found in the realm of the natural environment. It is intuitive that decisionmakers and individuals focus on interventions such as the development of renewable energy sources, plant-based diets and the recycling of plastic in the process of adopting climate change mitigation strategies or more sustainable life styles. As a result, policies that have traditionally been labeled as part of the social equality and development discourse are rarely considered.

An example of a rather surprising but highly influential climate policy is the promotion of education for girls. This policy kills two birds with one stone and addresses three of the Sustainable Development Goals: quality education, gender equality and climate action. To put it into more economic terms, it appears that increasing education for girls might have positive externalities that we are unaware of. If these environmental benefits are quantified, funding could be provided by environmental governmental departments and NGOs and thereby supplement the resources already available through development aid. More resources available means a higher chance of a successful policy.

One of the most obvious advantageous characteristics of a society with more educated women is a reduced rate of population growth, because better education women tend to have less children. Classic authors such as Malthus (1798) [pdf] and Erlich (1968) have highlighted that our increasing human population will ultimately lead to the degradation of the natural environment. Hence, a stabilized rate of population growth will result in a quantifiable reduction of human pressure on the environment, for example by a reduction in carbon emissions, land use change rates and pollution.

Secondly, educated women will have skills that enable them to participate in the decision-making process and resource management. In the global South, women are largely responsible for the collection of raw materials such as fuelwood and play a central role agricultural production due to the persistence of traditional gender roles. Decisionmakers will miss out on gendered knowledge about these resources by excluding women from the decision-making process and thereby reduce the effectiveness of mitigation policies. Moreover, management strategies proposed by women might be more sustainable, as women’s needs are generally more closely related to the preservation of nature. For example, the conservation of forests is essential for the collection of fuel wood.

Nevertheless, the relationship between education, women’s representation in decision-making bodies and environmental sustainability is complex. Patriarchal norms are resilient in many societies and even if chances to participate increase by education, women’s voices may not be heard [pdf]. Additionally, one should keep in mind that women are not a homogenous group. Other factors such as class and race also come at play, and it is unclear how women’s education interacts with those variables. Therefore, it is challenging to quantify the role of increased women’s education in effective and sustainable resource governance.

Bottom line: Education of girls does not only affect social equality, but also has a positive impact on the state of the natural environment. Two important dimensions of these positive environmental externalities are a decrease in carbon emission due to reduction of population growth, and resource management that is more focused on conservation. However, social norms about gender are powerful, which might decrease the effectiveness and benefits of this policy.


* Please help my Environmental Economics students by commenting on unclear analysis, alternative perspectives, better data sources, or maybe just saying something nice :).